Financial and commercial documents such as drafts, commercial invoices, packing lists, bills of lading, insurance certificates, etc. In Letter of Credit transactions, banks deal with documents alone and are not involved in underlying sales agreements. commercial documents such as drafts, commercial invoices, packing lists, bills of lading, insurance certificates, etc. In Letter of Credit transactions, banks deal with documents alone and are not involved in underlying sales agreements. commercial documents such as drafts, commercial invoices, packing lists, bills of lading, insurance certificates, etc. In Letter of Credit transactions, banks deal with documents alone and are not involved in underlying sales agreements.

A financing instrument issued by a bank in favor of an exporter that substitutes the bank's creditworthiness for that of the importer. instrument issued by a bank in favor of an exporter that substitutes the bank's creditworthiness for that of the importer. exporter that substitutes the bank's creditworthiness for that of the importer.

A negotiable instrument that calls for payment of money. The drawer (or seller) orders in writing for the drawee (or buyer) to pay a specific amount of money to the drawer on a certain date. Also called a bill of exchange. negotiable instrument that calls for payment of money. The drawer (or seller) orders in writing for the drawee (or buyer) to pay a specific amount of money to the drawer on a certain date. Also called a bill of exchange. negotiable instrument that calls for payment of money. The drawer (or seller) orders in writing for the drawee (or buyer) to pay a specific amount of money to the drawer on a certain date. Also called a bill of exchange.

Document which shows the terms of a sale. Includes a full description of the goods, sale price, charges, and discounts.

Any company that may transport goods for payment, such as an ocean vessel, aircraft, truck, train, or courier service.

An individual or company to whom cargo is shipped or consigned.

Indemnity given by the beneficiary of a letter of credit to the negotiating bank to induce payment despite any discrepancies that may exist in the documents. given by the beneficiary of a letter of credit to the negotiating bank to induce payment despite any discrepancies that may exist in the documents. beneficiary of a letter of credit to the negotiating bank to induce payment despite any discrepancies that may exist in the documents.

Letters, numbers, or symbols used on packaging to identify the cargo.

When the issuing bank (buyer's bank) establishes a Letter of Credit based upon the buyer's application and credit relationship. issuing bank (buyer's bank) establishes a Letter of Credit based upon the buyer's application and credit relationship. issuing bank (buyer's bank) establishes a Letter of Credit based upon the buyer's application and credit relationship.

Cost, insurance and freight. Shipping terms under which the seller pays all expenses involved in placing merchandise on board the carrier and prepays the freight and insures the goods to an agreed-upon destination. Shipping terms under which the seller pays all expenses involved in placing merchandise on board the carrier and prepays the freight and insures the goods to an agreed-upon destination. Shipping terms under which the seller pays all expenses involved in placing merchandise on board the carrier and prepays the freight and insures the goods to an agreed-upon destination.

Free On Board. The goods are placed on board a ship by the seller at a port of shipment named in the sales contract. The risk of loss of or damage to the goods is transferred from the seller to the buyer when the goods pass the ship's rail.

Documents, such as commercial invoices, certificates of origin, packing lists, bills of lading, etc., usually covering a merchandise transaction.

The person or company that sells or arranges to transport goods out of a country.

(See Draft.)

The person, company, or bank upon which a draft is drawn.

The person, company, or bank that creates the draft and receives payment.

A medium of exchange; coined or stamped currency.

Quality belonging to a document to transfer ownership of money, goods, or other items of value specified in the document by endorsement and/or delivery of the document.

The person or company due payment in the letter of credit. Usually the exporter (seller).

After the seller presents the required documents to this bank for review, it will notify the issuing bank that terms of letter of credit have been met.

(See Credit Application .)

Also known as the opening bank. It issues its commitment to the seller in the form of a letter of credit.

That part of a contract of sale that specifies who, between the buyer and the seller, is responsible for each aspect of shipping the goods.

The account party's bank that issues or opens the credit.

The privilege of buying goods, services or borrowing money in return for a promise of future payment.

Writing one's name upon paper for the purpose of transferring the title.

Documents, such as commercial invoices, certificates of origin, packing lists, bills of lading, etc., usually covering a merchandise transaction.

The person or company that sells or arranges to transport goods out of a country.

A right to the payment of money such as agency notes, commercial paper, T-Bills, certificates of deposit (CD's), banker's acceptances and repurchase agreements.

(See Draft.)

The person, company, or bank upon which a draft is drawn.

The person, company, or bank that creates the draft and receives payment.

A medium of exchange; coined or stamped currency.

Quality belonging to a document to transfer ownership of money, goods, or other items of value specified in the document by endorsement and/or delivery of the document.

The person or company due payment in the letter of credit. Usually the exporter (seller).

Compensation paid for damage or loss sustained or anticipated.

After the seller presents the required documents to this bank for review, it will notify the issuing bank that terms of letter of credit have been met.

(See Credit Application.)

Also known as the opening bank. It issues its commitment to the seller in the form of a letter of credit.

That part of a contract of sale that specifies who, between the buyer and the seller, is responsible for each aspect of shipping the goods.

Conditions in which the decision maker has to estimate the likelihood of certain outcomes.

The exclusive rights, powers, privileges and immunities to property, real and personal, tangible and intangible.

The unsecured promissory notes of large, financially sound corporations.